Borrowing Rehab Costs

[Brian Sanchez]

Hey BP, I got another question...

The property I am purchasing is all cash

The property requires rehab. I have a silent partner who is willing to lend the costs for rehab.

I have structured a Note for this agreement which outlines repayment on the rehab funds borrowed. The Note states the loan is secured with the property as collateral.

My question is…

Is it required by the State of Indiana to record the Note in the county?

Do I need to have Title create a mortgage attached with the Note for rehab costs only or is the Note sufficient for legal purposes of borrowing only rehab costs?

Do I need to have Title insure the Note or insure the Note/Mortgage if needed?